Gce Model Questions Vol1 2022 Economics Question 2

Practice essay / theory question 2 from the 2022 Gce Model Questions Vol1 Economics examination. This question covers Demand and Supply .

Gce Model Questions Vol1 2022 Economics Essay / Theory

Topic: Demand and Supply

Question 2 GCE_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • essay

In a certain region the market for wheat is described by the linear demand and supply equations: Qd = 500 000 – 2 000 P Qs = –100 000 + 3 000 P where Q is the quantity of wheat in kilograms and P is the price per kilogram in naira.

Question Parts

( a )

Determine the equilibrium price and quantity before any government intervention.

( b )

The government imposes a specific tax of ₦20 per kilogram on wheat producers. Show the new supply equation and calculate the new equilibrium consumer price, producer price and quantity exchanged.

( c )

Using your results from part (b), compute the dead‑weight loss (DWL) caused by the tax. Show the formula used and give the numerical value in naira.

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About This Question

This is Gce Model Questions Vol1 2022 Economics Question 2. It is one of the essay questions from the 2022 Gce Model Questions Vol1 Economics examination.

The question covers Demand and Supply .

View More Gce Model Questions Vol1 2022 Economics Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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